RE: Sillitoe exploration recomendations

8 The current extension of the deeply penetrating IP coverage is strongly endorsed, and any resulting deep chargeability highs similar in form to that at Romero would constitute compelling drill targets. The anomaly north-northeast of Hondo Valle could be either drill tested immediately or following confirmation with a line of deep IP. The IP results may also assist with definition of the subsurface extent of the suspected flow-dome complex, which is anticipated to be resistive.

Reappraisal of the GoldQuest drainage geochemical results, which led to the original discovery of Las Tres Palmas, would be a worthwhile exercise, with a view to identifying subtle zinc, copper and/or gold anomalies that might warrant follow-up using more detailed drainage as well as soil geochemistry. Anomalies might be subtle because of limited exposure of formerly blind Romero-type systems.

It might be asked if the calcite veinlets in the chloritised tuffs above Romero give rise to any sort of leakage anomaly. For example, the veinlets might contain trace amounts of zinc or some other element (e.g. manganese) that could be determined geochemically in surface (continues on next page)